EUR/SEK: Still seen at 11.40 in one-month after Riksbank keeps rates on hold – Danske Bank

EUR/SEK spiked higher after Riksbank’s decision to leave rates unchanged. Economists at Danske Bank analyze Krona’s outlook.

“Hawkish hold”

Expectations were split. However, this ‘hawkish hold’ is arguably a better outcome for the real economy and the housing market than a hike and as such it should limit the negative impact on the SEK – it might even give some support (growth channel). 

As the decision is bang in line with our call, we keep our 1M 11.40 target for EUR/SEK.